Suzano Ordered to Halt Pulp Project on Enviornment Permit

Suzano Papel & Celulose SA (SUZB5),
Brazil’s second-largest pulp producer, was ordered to suspend
the construction of a $2.9 billion plant by a federal court
because of insufficient environmental permits.

The court ruled that a permit granted by the northeastern
state of Maranhao only authorized Suzano to use eucalyptus to
make coal and doesn’t replace the need for a license from the
federal environmental agency, known as Ibama, according to a
statement on the website of the federal prosecutors office.

Suzano, led by Chief Executive Officer Antonio Maciel Neto,
plans to produce 1.5 million metric tons of pulp a year in the
plant, which is slated to start production in 2013, according to
the Salvador, Brazil-based company’s website. Pulp is the raw
material used to make paper.

The environmental license had been granted for an area of
42,000 hectares that covers the northeastern states of Maranhao
and Piaui.

Suzano (SUZB5) rose 0.5 percent to close at 8.18 reais at 5:13 p.m.
in Sao Paulo. Earlier it advanced as much as 1.8 percent.